It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to produce 120 pounds of silk. This is an example of _____ returns to specialization.

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04-03-2022
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It takes 12 units of resources to produce 100 pounds of silk. It takes 13 units to produce 115 pounds of silk and 15 units to produce 120 pounds of silk. This is an example of _____ returns to specialization.

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Tundexi Tundexi · Answer 1 · 2022-03-17T10:56:48+01:00

Because the additional output is produced with an increasing input in the production signals an example of diminishing returns to specialization.

What is a diminishing returns?

A diminishing returns to specialization is known to occurs if more units of resources are required to produce each additional unit.

In conclusion, the additional output which is produced with an increasing input in the production is an example of diminishing returns to specialization.